Mining Firms Says New Sanctions Unlikely to have Direct or Indirect Impact on their Firms

Development News
Mining and exploration companies operating in Eritrea confirms that the latest sanctions have no direct and indirect impacts on their firms or operations

By Market Watch,

Dec 06, 2011 — Sunridge Gold Corp. wishes to provide an update on the latest developments regarding the United Nations Security Council’s (UNSC) actions in respect to Eritrea.

The UNSC resolution 2023 (2011), which was passed December 5, 2011, includes three sections (see the actual wording of an extract of the text of the resolution below) related to the mining industry and should have no direct impact on Sunridge’s operations in Eritrea. At this time, it is not possible to anticipate any indirect impacts of the resolution.

The mining specific sections of the resolution are reprinted below:

12. Expresses concern at the potential use of the Eritrean mining sector as a financial source to destabilize the Horn of Africa region, as outlined in the Final Report of the Monitoring Group (S/2011/433), and calls on Eritrea to show transparency in its public finances, including through cooperation with the Monitoring Group, in order to demonstrate that the proceeds of these mining activities are not being used to violate relevant resolutions, including 1844 (2008), 1862 (2009), 1907 (2009) and this resolution;

13. Decides that States, in order to prevent funds derived from the mining sector of Eritrea contributing to violations of resolutions 1844 (2008), 1862 (2009), 1907 (2009) or this resolution, shall undertake appropriate measures to promote the exercise of vigilance by their nationals, persons subject to their jurisdiction and firms incorporated in their territory or subject to their jurisdiction that are doing business in this sector in Eritrea including through the issuance of due diligence guidelines, and requests in this regard the Committee, with the assistance of the Monitoring Group, to draft guidelines for the optional use of Member States;

14. Urges all States to introduce due diligence guidelines to prevent the provision of financial services, including insurance or re-insurance, or the transfer to, through, or from their territory, or to or by their nationals or entities organized under their laws (including branches abroad), or persons or financial institutions in their territory, of any financial or other assets or resources if such services, assets or resources, including new investment in the extractives sector, would contribute to Eritrea’s violation of relevant resolutions, including 1844 (2008), 1862 (2009), 1907 (2009) and this resolution;

The full text of the resolution can be found HERE.




Nevsun Resources Ltd. (NSU.TO,NSU) is ahead 10 cents at $6.05 a share today after reassuring investors that the United Nations Security Council’s move yesterday expanding sanctions against Eritrea will have no direct impact on the company or its Bisha gold, copper and zinc exploration operations.

The Bisha Mine is expected to produce more than 1.14 million ounces of gold, 11.9 million ounces of silver, 821 million pounds of copper, and 1.3 billion pounds of zinc during its initially estimated 13-year mine life, according to the company’s website.